India · Delayed Price · Currency is INR Sula Vineyards Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY 2026 saw a 7% YOY revenue increase, led by strong wine tourism and premium brand growth. Margins remain under pressure from higher grape costs, but cost controls and strategic CapEx in wine tourism support optimism for FY 2027.
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Q3 saw significant revenue and margin pressure due to one-time destocking in Karnataka, but excluding this, revenue was stable year-on-year. Wine tourism delivered strong growth, and the Source range and CSD channel outperformed. Outlook is optimistic with improved demand and moderated Capex.
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Revenue remained stable in Q2 FY26, with wine tourism and The Source brand driving growth. Gross margin contracted due to mix and inventory, but H2 is expected to see margin recovery as Telangana disruption resolves and CapEx tapers.
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Q1 saw steady revenue after adjusting for a one-time gain, with strong growth in wine tourism and premium brands despite urban demand softness and a temporary disruption in Maharashtra. Gross margin was impacted by a sourcing model change, but outlook remains positive with new launches and expansions.
Fiscal Year 2025
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Q3 saw subdued growth due to urban slowdown and election disruptions, but elite and premium wines and wine tourism delivered strong results. Margins were pressured by lower WIPS credits and higher S&D spend, but management expects margin recovery and significant earnings growth in FY26.
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Own brand segment achieved its tenth consecutive quarter of growth, led by premiumization and strong performance in non-core markets, despite a challenging demand environment and higher costs. Wine tourism showed resilience with higher spend per visitor, and new expansions and events are expected to drive H2 growth.
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Q1 FY25 saw record first-quarter sales with 10% revenue growth despite election and heatwave headwinds. Economy and Popular brands outpaced Elite and Premium, aided by a new distribution model. Wine tourism was soft but is expected to recover, and new capacity and projects are set to boost H2.